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Europe Daily Bulletin No. 9974
GENERAL NEWS / (eu) eu/trade

Catherine Ashton talks with Chinese authorities

Brussels, 10/09/2009 (Agence Europe) - After having appealed on Tuesday for more bilateral EU and Chinese investments (EUROPE 9972), Catherine Ashton highlighted the importance, on Wednesday, of mutual trust between the two parties for fostering their economic and trade relations (EUROPE 9973). On Thursday 10 September, Commissioner Ashton, at the request of European firms operating in China, requested that the latter be given fairer treatment: “the perception of European businesses ... has been that they would not be welcome in tendering for business in China. European businesses do not expect red carpet treatment in China but we need to make sure they don't get the rug pulled from under their feet at the same time”. Ashton was speaking at a press conference in Beijing on the fifth day of their first official trip to China. In its most recent annual report, the European Chamber of Commerce in China criticised the slowing down of reforms in the country, which the Chamber described as a “partial backtracking” due to the effect of the global economic crisis. The Chamber also highlights the many obstacles foreign companies in China have to face in certain sectors, such as cars, where they are obliged to be equally owned by Chinese partners or excluded from certain markets and public procurement, particularly in the green energies sector (EUROPE 9970).

On Wednesday, Ashton said that she had been given assurances by the Chinese officials she met that European companies operating in China would be considered as Chinese companies, though she admitted that she did not know how Beijing would manage to make this the case. Furthermore, while recognising that there were disputes between the EU and China, Ashton suggested that 99% of bilateral trade works correctly. “We have very clear rules in the EU about anti-dumping and my responsibility is to make sure that we stick to those rules, and that's what I do. I would like to avoid needing to use those rules and we need to continue to develop this partnership strategically in order to trade 100 per cent in the right way,” she said. The EU and China may vaunt the scale of bilateral trade, which amounts to $300 billion per year, but they have still seen the number of disputes increase over the last few months, with the EU launching four anti-dumping investigations against Chinese goods since the start of 2009. This trend is not being taken kindly in Beijing, which did not miss the opportunity to express its displeasure. “China and the EU must deal appropriately with their trade disputes and take forward their economic and commercial cooperation,” Chinese Deputy Prime Minister Wang Qishan stated on Wednesday, after a meeting with Commissioner Ashton, with whom he jointly chairs the high level dialogue on the economy and trade. Welcoming the very close bilateral economic relations, Wang nevertheless re-affirmed China's wish that the EU recognise “as soon as possible” its status as a market economy. China has been calling to be recognised as a market economy, which would make it less open to anti-dumping taxes, since 2003. (E.H./transl.rh/rt)

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